Oilmeal exports up 16%

Japan demand compensates for loss of China consignment rejection

The country's oilmeal exports during April-November 2005 rose 16 per cent to 18.22 lakh tonne as against 15.74 lakh tonne in the corresponding period last year, according to estimates by the Solvent Extractors Association of India (SEA).

Exports have picked up since June this year led by improvement in domestic crushing margin vis-a-vis the global figure and with fresh demand coming in from Taiwan, South Korea, Vietnam and Japan, said B V Mehta, executive director of SEA.

Earlier in April-May, exports were lower year-on-year mainly owing to lower crushing margins and bumper global oilseeds crops.

In the first eight months of the current financial year, soymeal exports are at 11,48,825 tonne compared with 9,82,575 tonne in the corresponding period last year, according to SEA estimates.

"The rejection of soymeal consignments by China with bird flu scare pulling down their domestic meal demand for the poultry has not hit India as new orders from Japan made up for the loss," said Rajesh Agarwal, chairman of Soybean Oil Processors Association.

Market players say that at present, global soymeal demand is under pressure due to bird flu scare, which is pulling down prices globally.

Further adding to the current bearish sentiment is the huge stock of soymeal with major producing countries following poor export demand and good weather conditions in South America, said Si Kannan, an analyst with Sharekhan Commodities. He expects prices to rebound after the scare eases off.

In the April-November period, ricebran exports have touched 53,950 tonne compared with 29,131 tonne last year. Castorseed meal have spiralled to 1,48,350 tonne from 28,650 tonne last year, due to good demand coming in from Taiwan and South Korea. Vietnam and Thailand markets are also seen keen on castorseed meal as an important ingredient for organic fertiliser.

In the same period, rapeseed meal has, however, declined slightly to 394,100 tonne from 4,28,425 tonne last year. Groundnut meal exports also fell year-on-year to 77,200 tonne from 1,05,525 tonne last year.

Port-wise, Kandla handled about 63 per cent (11,43,000 tonne) of the total oilmeal exports during the period under review, followed by Mumbai (18 per cent at 3,25,925 tonne), Vishakapatnam (9 per cent at 1,59,125 tonne), Bedi (6 per cent at 1,19,225 tonne) , and Kakinada (3 per cent at 49,525 tonne).